Global Investors Thrust Indonesian Automotive Exports

Jakarta, Indonesia | February 07, 2008 by D-8 Secretariat

Indonesian National Automotive Industry, through PT Astra Daihatsu Motor (ADM) has reached its target of massive completely-built-up car export which is an effect of the global investors networks throughout the country. Without such a network, the export target would have been difficult to be reached. “Our automotive exports has alot to do with the already existing investors network in Indonesia. We have predicted it since the beginning, that there is a chance to get into global network,” said Expert Staff to the Trade Minister of Indonesia, Subagyo, during the launch of completely-built-up car export on Tuesday (5/2/2008).

Indonesia’s exports of completely-built-up (CBU), completely-knocked-down (CKD) cars and automotive components are projected to increase in value by about 40 percent in 2008. Exports of CBU, CKD cars and automotive components in 2008 are expected to reach a total value of 2.9 billion US dollars or up by about 40 percent from 2.1 billion US dollars in 2007, Director General of Transportation Vehicle Industry and Telematics at the Industry Ministry, Budi Darmadi, said in Jakarta, Tuesday.

“This year CBU car exports could reach 75,000 to 80,000 units up from 55,000 units in 2007,” he said. Budi said he was optimistic the value and volume of car and automotive component exports would increase in 2008 as car making principals were increasingly allowing the automotive industry in Indonesia to export. “The exports to Japanese market is very encouraging for us, since Japan is known to be a tough market with an extremely high qualification of quality. This means that Indonesia has already succeed to enter as a global player in this sector,” he said further.

PT Daihatsu Astra Motor (ADM) had set itself the target of exporting 18,000 units of Grand Max minibus and pickup cars under the brandnames Toyota Town Ace and Toyota Lite Ace to Japan in 2008. ADM would also export Daihatsu Terios cars.

PT Toyota Motor Manufacturing Indonesia (TMMIN) would export Toyota Fortuners, Innovas and Avanzas to a few countries. Indomobil would do the same with its Suzuki APV and so would other car assembling companies with their respective products. Budi said the existence of the newly built car port in Tanjung Priok was expected to greatly facilitate the automotive industry`s production and export performance.

At present the national automotive industry`s production capacity stood at about 900,000 units a year while the domestic market this year was projected to absorb more than 500,000 units.

Automotive industry is one important industry within D-8 countries, and discussed during Working Group on Industry in Kuala Lumpur, Malaysia, last May 2007. D-8 Secretariat expects the detail of cooperation of automotive industry within the member states will be further discussed in the next WG on Industry in Indonesia, in 2008.

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